Chapter 13 Bankruptcy Lawyers in Montgomery County, PA

When bills pile up and it becomes clear that you won’t be able to meet your financial obligations, it may be time to declare bankruptcy. Whether you are declaring bankruptcy as an individual or as a business owner in Montgomery County, PA, you should know that you have options. The U.S. Bankruptcy Code outlines a number of different options; Chapter 13 is one of those.

If you’re thinking about declaring bankruptcy in Montgomery County, PA, it’s important that you speak to a top Chapter 13 bankruptcy lawyer who can go over each option with you and help you determine which type will work best for your situation.

There are 3 main reasons that individuals with consumer debt and sole proprietors consider Chapter 13 bankruptcy in Montgomery County, PA:

  • curing a default in a mortgage or car loan
  • repaying a tax debt
  • repaying unsecured debt in whole or in part when a Chapter 7 bankruptcy is not possible or advisable; for example, if an individual or business has too much disposable income or exposed assets.

Chapter 13 is aimed at individuals and sole proprietors who have steady income and can repay some or all of their unsecured debt or cure mortgage and car loan defaults in a period of three to five years. If it sounds complicated to you, don’t worry; a good Chapter 13 bankruptcy lawyer can explain all this information to you in a way you can easily understand. 

At Nahrgang & Associates in Montgomery County, PA, we can supply you with a top Chapter 13 bankruptcy lawyer who will give you all the information and the tools you will need to make the right decisions for yourself.

Find Reliable Chapter 13 Bankruptcy Lawyers in Montgomery County, PA

There are 3 main reasons that individuals with consumer debt and sole proprietors consider Chapter 13 bankruptcy:

1) curing a default in a mortgage or car loan;

2) repaying a tax deb;

3) repaying unsecured debt in whole or in part when a Chapter 7 bankruptcy is not possible or advisable if there is too much disposable income or exposed assets.

Chapter 13 is aimed at individuals and sole proprietors who have steady income and can repay some or all of their unsecured debt or cure mortgage and car loan defaults in a period of three to five years.

Chapter 13 bankruptcy protection is very similar to getting a consolidation loan that allows you to make one payment to cover all of your debt. When you hire a Chapter 13 bankruptcy lawyer to assist you with this process, you stand a much better chance of having a positive outcome in your case. Chapter 13 bankruptcy attorneys will know exactly which debts can be included in your filing and they may be able to protect certain assets from being seized.

All your unsecured debts, including personal loans, credit card debt, income tax debt, medical bills, and vehicle deficiencies can be included when filing for Chapter 13 bankruptcy. You can cure your mortgage and avoid sheriff sales and execution by the taxing authorities. You can take advantage of the automatic stay, which stops all collection activity when you file your bankruptcy petition. That means no more harassing phone calls, letters, lawsuits, or sales of real estate or other assets. If you hope to be successful in your bankruptcy declaration, it’s a good idea to hire a Chapter 13 bankruptcy lawyer to help you navigate this process.

What Are the Steps in a Chapter 13 Bankruptcy?

No matter which Chapter of the U.S. bankruptcy code you wish to use, all voluntary bankruptcies (as opposed to involuntary bankruptcies, which are rarely filed) begin with the same steps. Your Chapter 13 bankruptcy attorneys can advise you of these steps and ensure you complete them properly. When you speak to a Chapter 13 bankruptcy lawyer, you stand a much better chance of being successful and may be able to protect some of your assets. Here’s how your Chapter 13 bankruptcy lawyer will get the process started:

1) A petition is filed with the court. Chapter 13 differs from Chapter 7 in that a Chapter 13 requires the filing of a Chapter 13 Plan. This serves as your proposal to resolve your debt as required by Chapter 13. Payments must be made to the trustee within 30 days of the Petition filing, which is ultimately subject to approval by the court.

2) The next step is a Meeting of Creditors, which is intended to be a chance for your creditors to come and ask you questions; of course, most top Chapter 13 bankruptcy attorneys know that they rarely appear at these meetings. Rather, the meeting is conducted by the trustee, known as a Standing Chapter 13 Trustee in Chapter 13 cases. As in a Chapter 7, the trustee reviews the petition with you and your counsel, all while the proceedings are tape recorded and under oath. The Chapter 13 trustee will then suggest any changes that may be required to the forms, schedules, and Chapter 13 Plan.

3) The final step is a Confirmation Hearing which doesn’t necessarily require attendance by you and counsel. Rather, if the trustee is satisfied that your Plan is feasible and comports with Chapter 13, the trustee will simply recommend confirmation and approval of the Plan. It is extremely likely that the court will then confirm the Plan if it has been recommended by the trustee. As long as you are able to comply with the plan throughout the entire length of the case (typically five years) you will be entitled to a discharge of any debt remaining unpaid and any defaults will be deemed cured.

Once you complete these steps, you will be able to pay your debts and get a fresh start. If you are planning on declaring bankruptcy, hiring a good lawyer is a smart move. Call Nahrgang & Associates in Montgomery County, PA right away to get the process started.

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